Published on: August 3, 2022

Services driving impressive progress

Shearwater released an impressive set of estimate-beating FY22 results on 29 July. The revenue figure of £35.9m was £0.4m ahead of our estimate and the guidance given back in April, and 13% ahead of FY21. The outperformance was driven by strong results from the Services business. The Software business is mid-product transition, so understandably saw a decline in revenues. Adjusted EBITDA of £4.4m was 5% ahead of our expectation and 19% above FY21. We are raising our FY23E estimates and look forward to the investor presentation on 3 August (details below) to find out more about the strength in Services and how the new products / platform in the Software business can drive growth.